Consumers, Estate Agents and Redress Bill [HL]

I am grateful to the noble Baroness, Lady Miller, for raising the important issues to which these clauses give rise and for the opportunity to reflect on them. The noble Baroness, Lady Thomas of Winchester, mentioned the post office network. First, the Government are putting £1.7 billion into supporting the post office network. There is, of course, always a question of how much support the Government should give, but that is a considerable amount of money, and no post offices will close without local consultation. So there is that commitment. There is no reason why the NCC, which incorporates the functions of Postwatch, should be any less effective. In fact, as my noble friend Lord Whitty said, the Government’s view is that it should be more effective, because here you have one large consumer voice for consumers across a whole range of services. My noble friend made the point about the range of services that people expect from their post office these days. They provide not only postal services but a whole range of other services. My noble friend Lord O’Neill made similar points. I will return to the question of regional networks as I go through the clauses. Clauses 14 and 15 provide for continuity specifically by preserving key elements of the current arrangements. They confer important powers and duties on the new council to act in the interests of consumers. I should make the point that Clause 5 makes specific provision for the new council to have regard to vulnerable groups, including the elderly and the disabled. Clause 14 enables the new council to bring the full weight of the regulator, the Postal Services Commission, to bear on instances where, for example, the council is concerned that a licence condition has been breached. That is clearly important to correct what might otherwise turn into a long-running delinquent practice by a licence holder that could have adverse consequences for many consumers. At the same time, it is prudent to provide for the council to agree with the Postal Services Commission a description of issues that should be referred by the council to the regulator. That enables the commission to be made aware of those issues that would properly concern it and enables the council to play an important and appropriate role in that process, ultimately to the direct benefit of consumers. I hope that the Committee will agree that it is desirable there should be provision in the Bill for these matters to be brought to the attention of the commission, and that it is in the interests of the commission and the council to agree from time to time on the scope of matters to be referred under this clause. I turn to Clause 15, which makes specific provision for the new council to have a role in investigating the number and location of public post offices throughout the United Kingdom. Clearly, that is currently a key role for Postwatch, and the Committee will be aware of the importance of the role going forward as we consider the restructuring of the post office network, to which I have already referred. That will not change. There will still be a role of oversight to the changes to the post office network. Under the Government’s proposed strategy forthe network, which is currently out to public consultation, restructuring of the post office network will be undertaken on a more strategic and structured basis than previously, within the framework of access criteria to safeguard reasonable access to services in rural and deprived urban areas. It is not just rural areas that badly need postal services and post offices but also deprived urban areas. We should not forget that. The closure element of the programme will be limited to a maximum of 2,500 offices, as has already been announced. It will include both the urban and rural networks, with rural closures being mitigated at least in part by the outreach programme—about 500 offices or facilities being offered. Postwatch, in its current form, will have a significant role to play in developing proposals for closures and outreach in each area. The restructuring and closure programme will be completed by late 2008, and should therefore be completed—or very largely so—before Postwatch merges with the new council. Returning to the point made by the noble Baroness, Lady Thomas, I mention regional committees. I know that Postwatch values highly the work of its regional committees, as do the Government. That is why the Bill makes specific provision in Schedule 1 for the council to establish regional committees. There is no set number of committees which may be established under that provision: if we thought of a number today, it would inevitably be arbitrary, and a greater or smaller number of regional committees may be needed over time. Regional committees established by the council would be able to cover all consumer issues, not just postal services or energy as we have now. I wanted only to emphasise that there is no prejudice against regional committees, and that the Bill makes a sensible and flexible provision to enable the council to fulfil any regional remit in an appropriate way to the benefit of consumers. Clause 14 agreed to. Clause 15 agreed to. Clause 16 [Reports by the Council]: [Amendments Nos. 67 and 68 not moved.] Clause 16 agreed to. Clause 17 [Secretary of State's power to require reports]: [Amendment No. 69 not moved.]